Friday, December 23, 2011

ITC Integrated Tourism Complexes and Other Developments in Oman

Oman is in the process of rapidly developing the coast line near Muscat and also in Salalah with various tourism and residential projects. I am putting together a list of such developments below. Some projects fall under ITC (Integrated Tourism Complex) status giving special residential status and ownership rights to non-Omanis who buy in. More on ITCs can be found at the Ministry of Tourism site under investments (http://www.omantourism.gov.om/).Please see the end of this post for list of ITCs from the Ministry of Tourism website with project contact information. Also, check out the Curtis Law Blog (http://omanlawblog.curtis.com/) and search for ITC.The development is part of a long term plan to diversify Oman's economy as allegedly mentioned in Wikileaks cable of 2005, 'Egyptian and Emirati investors, including Dubai Crown Prince Mohammed bin Rashid al-Maktoum (whom the Sultan termed a "fearless" investor), were set to launch several new resort complexes along Oman's undeveloped coastline...'Overview of Development Status - Updated Aug. / 2012Resident occupied:

Development ProjectsOmagineWho: Government of Oman and Omagine LLC Where: Just North of Muscat AirportWhen: Planning Stage. Seeking final permissions; Shareholder Agreement Omagine Inc. signed July 2011 (Omagine LLC + contractors)Website:www.omagine.com/Outlook: The neatest design of all projects. Good location.

Seven Pearls of Omagine

'It is presently planned to be an integration of cultural, heritage, educational, entertainment and residential components, including: a "high culture" theme park containing seven pearl shaped buildings, each approximately 60 feet in diameter, associated exhibition buildings, a boardwalk, an open air amphitheater and stage; open space green areas; a canal and an enclosed harbor and marina area; associated retail shops and restaurants, entertainment venues, boat slips, and docking facilities; a five-star resort hotel, a four-star resort hotel and possibly a three or four-star hotel; commercial office buildings; shopping and retail establishments integrated with the hotels, and approximately two thousand residences to be developed for sale.'The Wave (ITC) (Al Mouj / الموج / Arabic)Who:Omani Government, Majid Al Futtaim Investments (MAFI) and the Omani pension fundsWhere: Near the Muscat AirportWhen: Nearing Completion. Resident occupied. Golf Course opened December 2011 (nine holes out of 18). Large expat community. Serves as corporate housing. Costa Coffee and other retail shops supported. Authentic Zanzibar restaurant nearby.Website: www.thewavemuscat.com, www.almoujgolf.com, www.thewavecommunity.com (not official)Outlook: Moderate success but gaining momentum. Many residents are pleased with modern appliances, central air and maintenance. Secure environment and close to central Muscat. Architectural interest. Omanis also are enjoying the project. Apartments start at 75,000 (OMR); rentals 600 (OMR) mo. Complaints heard are that not all phases of project have been completed (i.e., beach, golf.... ) and that high maintenance fees are charged without transparency and justification which hopefully will be worked out soon. Desirable in future. Overall thumbs up.

'The Wave, Muscat is a unique community that offers incredible diversity in leisure and lifestyle. From the pristine beaches, to the 400-berth Marina, to the Greg Norman-designed golf course, to the beautiful landscaping and architecture throughout. The contemporary villas and townhouses enjoy views of the beach, waterways and gardens, and all are mere minutes from the cosmopolitan shopping and dining at Al Marsa Village. The luxurious Kempinski and Fairmont hotels infuse the estate with a distinctive resort ambiance.'Qantab (Saraya Bandar Jissah (ITC)

Who:Omran (the Omani government's tourist development company) and Saraya HoldingsWhere: North East Muscat Coast near Al Bustan area and Shangri-La ResortWhen: Planning phase; currently, a favorite local beach.Update: Aug. 2012 - due to kick off this month. Road closed signs posted; property marked off. Website: www.sarayabandarjissah.com, www.sarayaholdings.comWhat: 'Saraya Bandar Jissah reflects the essence of harmony as it brings together nature and good living with a selection of lavish residential components and luxurious outlets ranging from recreational facilities to commercial venues in addition to world renowned hotel brand operators.'Outlook: Convenient location to Muscat (within commuting range) with beautiful natural landscape and beach. Historic buildings will be demolished and popular recreational area will be taken from locals, but overall viable.

OmanBotanicGardens

Who:Government of Sultanate of OmanWhere: Muscat in Al Khoud areaWhen: Planning completed; Currently under developmentWebsite:http://www.oman-botanic-garden.org, http://www.obmi.com/#/project?id=17&id2=6What: A 'living museum' for the conservation, education and love of plants. The complex will also house walking trails, IMAX theater and luxury resort.'Oman Botanic Garden will bring habitats to life from all over Oman – so you can experience the landscapes/habitats, damp, cool fog forests of Dhofar all year round, the baking sand desert, unique juniper forest, arid, salty Sabkha, dry gravel desert and beautiful wadis all in one place; surrounded by a stunning nature reserve.'Outlook: Looks like a fascinating (a bit ambitious) and worthwhile project which locals and foreign visitors will enjoy in years to come.

Shangri-La Resort / Barr Al-Jissah Residences (ITC) Who:Zubair Corporation and Government of OmanWhere: North East coastal area of Muscat. 15 minutes from Wadi Kabir/RuwiWhen: Main residences/hotels/small marina complete and occupied; Heritage Village getting final touch-upsWebsite: http://barraljissah.com/, www.shangri-la.com/en/property/muscat/barraljissahresortWhat: Exceptionally designed villas and townhouses; 5-star resort and spa; Marina; beach front; Heritage Village. Great Sheesha Hall with open roof.Outlook: The complex is close to Muscat and built on secluded naturally beautiful inlet and beach. It appears the hotel's occupancy remains low. Night lighting extremely poor. Security and peaceful. Villas built on cliff's edge overlooking inlet. Prices seem inflated for value. Villas range in price from 300,000 - 5,000,000 OMR (750,000-12.5M USD)(source: baitoman.com).

Click to Enlarge: Available residences for purchase in green colour

Salam Yiti Resort (ITC)Who: Joint venture between Omran (now its subsidary Tourism & Real Estate Development Company (TREDCO) and Sama Dubai (merged to Dubai Holdings- 'M bin R Maktoom').Where: Coastal area near Muscat and Hajar Mountains. 30 minutes from Wadi Kabir/RuwiWhen: In 2008/9, millions of tons of dirt was dredged and used to fill in the coast area in preparation. Considerable infrastructure construction completed. Then, the project was put on hold possibly due to economic downturn in Dubai. As of January 2011, it was reported Omran will take more of lead roll, and the project will be 'toned down' to fit market demands. As of August 2011, some road construction was witnessed from the R/A near ShangriLa to Yiti village including the start of a new bridge. Website: N/A What: Originally, the projects key components would 'consist of of three five-star deluxe hotels, golf course and leisure club, marina and eco-centre, as well as a souk.' The current project's plans may have been revamped to something more 'feasible.'Outlook: With the new road completion, Yiti will become within commuting distance to Muscat and seem to be a viable project. Yiti village has been hit hard with cyclones Gonu and Phet and shows signs of dilapidation. Yiti has many fisherman and the new project would uproot their way of life. The old villagers still meet and drink tea together in the afternoons while sitting under the shade. They are a kind and traditional bunch. There is a large rock island which one can walk to in low tide. We found evidence of magic ceremonies with animal remains and incense within cave like structure of rock.

Villas for the residents of Yiti who were affected by the Gonu Cyclone sponsored by the government.

Yenkit (between Yiti and Bandar Khiran) (ITC)Who:Yenkit Tourism Development L.L.C and Majid Al Futtaim Group (same as 'the Wave')Where: Coastal area near Muscat. 20 km southeast of Muscat.When: In 2007, the project was announced and Master plan approved; However, no further development progress known since 2008. Still listed on Oman Tourism website; however, not listed on Futtaim projects website.Website: http://www.yenkit.comWhat: The project will be an ‘Integrated Tourism Complex’ project as designated by the Oman Ministry of Tourism, and will consist of four 5 star hotels with approximately 900 rooms, an 18 hole international golf course; a wide range of tourist facilities, including sports and leisure facilities, a resort village, nature reserve and visitors centre, beach club, heritage and craft centre and major open spaces; 1400 residential villas and up to 1900 residential apartments and townhouses.

Bandar Al Khayran/Oberoi ResortWho:Alargan Towell Investment co (LLC)Where: Bandar Al Khayran;17 km south east of Muscat on coastWhen: Expected 2013. Currently, infrastructure construction can be seen at the site. As of May 2012, it appears the Oman tourism company has taken over and construction continues.Website:www.alargan.com/v3/ProjectDevelopments/ProjectsUnderConstruction.aspxWhat: 'The project will include an 82 key hotel, central facility and a health spa.The hotel facilities will comprise individual chalets built into the slopes of the surrounding picturesque mountains. The beach front consists of two coves which will offer guests a range of recreational activities. A world class spa facility and mix of restaurants will also be provided as part of the resort’s central facilities.'

When: In final stages of construction. Boutique Hotel is open. http://www.sifawyhotel.com/Update as of Feb. 2012: It's rumored Muriya has stopped construction in Sifa and in the Salalah project due to lack of cash flow.Website: http://www.jebelsifah.com/What: 'Capturing a space of 6.2 million square meters making it the most prevalent ongoing development in the country. The space borders the Hajjar Mountains and the Gulf of Oman, and includes an 18-hole PGA Golf Course designed by legendary Peter Harradine, a large inland Marina, Marina Town, leading five star hotels, resorts, and spas, in addition to the latest in retail brand names, stores, restaurants, and cafés.'Outlook: Potentially great; however, there are inadequate roads leading to the project limiting access for the amount of planned visitors. In alternate, one can take a water taxi for 45 minutes from Muscat for 10 OMR. Currently apartments are being advertised at a price break starting at 59,000 OMR (150,000 USD). Update Feb. 2012: There is current work to add a shoulder to the roads and there is better 'signage' starting from Ruwi in Muscat. A new improved road from Yiti to Sifah is in the works. However, it is rumored that Muriya has stopped construction on the project due to cash flow issues- very low occupancy but a beautiful place. The marketing strategy needs to be rethought. Very charming with mountain backdrop and huge beach and sea. Village life has also been preserved.Update Aug. 2012: Landscaping underway; Cacti garden at entrance. Development of private villas along beach and inland.

PDO Camp / Ras Al Hamra Project

Where: Muscat, Ras Al Hamra - Close to Qurm- Off of Fahoud St. towards PDO Club; construction leading up to PDO club next to coastline. When: Presently under construction. Some of the old housing for PDO will be taken down.What: New modern complex with residential, shopping, gyms, walking trails and golf for PDO employees.

Sohar Airport Where: Sohar. Oman across from the Crowne Plaza hotel on the Wadi Jizzi Road to BuraimiWhen: Currently, under construction. Runway almost completed. Within the next two years. What: Airport to server the Batinah region. Runways will meet specs to accommodate the largest available commercial aircrafts. Terminal will be scaled down at first and possibly accommodate a few hundred travelers a day. Many camels roam in the area of the airport.

Buraimi City Gate and New Road/Malls/LuLu

Where: AL Buraimi City next to Al Ain, UAE

When: Presently under construction. Main structures completed (as of early 2012). Road should open within next few months 2012. Lulu opened May 2012.

What: City gate, new expressway, new campus for University College of Buraimi, new malls including LuLu's hypermarket.Sur Gate Project

When: Officially, kicked off June 26/2012. Next four years in phases. A new expressway from Muscat to Sur was recently completed. Travel time is approximately 1.5 hours between the two cities.

Website: www.peie.om

What: 'A $311.6m integrated commercial, leisure, shopping and residential development is to be established at Sur Industrial Estate. Set on an area of over 200,000 (also reported as 225,000)m2, the first phase is expected to be operational before the end of the year. Sur Gate includes a hypermarket (11,812m2), shopping mall (58,437m2), hotel and business centre (20,127m2), commercial area (25,670m2), townhouses and an accommodation complex for industrial estate employees (5,859m2).'

Where: Hillside and around a Golf course in Muscat; 10 minutes from airport towards the new expresswayWhen: Started 2003 as first ITC project. Ran into some hiccups and project leaders asked original buyers to put up more capital to finish funding the project. First villa keys turned over in 2010. There are 80 villas (sold out) and 135 apartments. See article: The Muscat Hills Dilemma. Website: http://muscathillscommunity.com/; http://www.muscathills.comWhat: 'Muscat Hills Golf & Country Club Estate is centered around an 18-hole PGA standard Championship Golf Course surrounded by a low density luxury residential community. The Golf Course has been delicately crafted around the natural Omani mountain ranges to produce the first course of its kind within the Middle East.' Outlook: Phase 1 villas sold out. Phase 2 villas under consideration. First 18 hole championship golf course in Oman. Considered successful. Jul /2012 Update:BADR Muscat Hills (ITC designated) under construction containing 20 Villas with azure-coloured pools.See enticing virtual walk-through video here:www.youtube.com/watch?v=VXpTlW7dX2g. More from Oman Observer:http://main.omanobserver.om/node/103203.

Badr Muscat Hills:
http://main.omanobserver.om/node/103203

The Malkai Resort (ITC)Who: Al- Maeen Real Estate services L.L.C (Kimji)Where: Barka, Oman. Just north of Muscat. When: In planning phase as of 2008; no recent newsWebsite: http://www.themalkai.com (CGI photos)What: 'The Malkai will be a Country Club and Resort to rank among the best and most exclusive of destinations in the world. At its heart a world class nine hole golf course - the first ever in Oman designed by renowned golf course architects, Gary Player Design.Located some 50 kilometres from Muscat in Oman's Al Batinah region, close to the town of Barka, just three kilometres from the sea and your own private beach club.'
Blue City (ITC) 'As of November 2009, sales of Blue City properties totaled $75 million, compared with a forecast of $860 million, according to Khalid Howladar, senior credit officer at Moody's Investors Service in Dubai. "The business model was to keep building with the purchase payments received," says Howladar. "Now there are no buyers and those that did buy are no longer paying, so there's no cash flow."'http://www.businessweek.com/magazine/content/10_23/b4181045692999.htmWebsite: http://www.bluecityoman.net/Where: Just outside of Barka towards Swadi. Security bars entry at site. Outlook: Unknown, considered bust as of now but hopefully will get back on track.What: 15 billion dollar mega project See: http://www.muscatconfidential.blogspot.com/ for more information.